September 29, 2020, Vancouver, British Columbia and Burnham, Texas (GLOBE NEWSWIRE) – Kelso Technologies Inc. (“Kelso” or “Company”), (TSX: KLS), (NYSE American: KIQ) reported that in accordance with the requirements of the American Association of Railroads (AAR), major customers have begun to install Kelso’s new 2-inch pressure car angle valve ( K2AV), used for commercial field service trial test.
K2AV is a high-value special valve specially designed for pressure tank trucks. The service trial will test a total of thirty K2AV devices on ten tanks. According to AAR statistics, currently, the railway fleet currently has about 85,000 pressure tank cars. For Kelso, K2AV represents an important opportunity to expand the company’s product coverage in railway tanker equipment.
K2AV and the company’s Kelso top ball valve (KTBV), standard bottom hole outlet valve (KBOV) and pressure truck pressure relief valve (KPCH) have undergone field service test tests together, which is a prerequisite for obtaining the final AAR commercial. These advancements made by railway stakeholders in service field trials are a direct result of Kelso’s focus on customer-oriented product development programs that are expected to drive the growth of railway-related revenue in large railway product pipelines. The design goal is to significantly reduce the costly long-term performance and supply issues that are persistent problems with the current angle valves that are widely used today.
K2AV is used on pressurized rail tank cars, and its main purpose is to load and unload the contents of the tank. It is located on the top of the pressure service tanker, and its standard configuration consists of three or four angle valves for each tanker. The pressure tanker is loaded by an angle valve located inside the top protective cover assembly, and is used to transport flammable and non-flammable gases.
The key proprietary design elements of K2AV include the use of single-piece, high-quality machined parts to eliminate any pore defects-no cast parts are used. K2AV is designed for inspection, repair and maintenance, because the outlet panel flange and gasket can be easily removed for repairs. K2AV includes a self-draining, self-cleaning valve seat, so it can prevent the accumulation of goods in the seat area, thereby extending the life of the valve seat and valve. K2AV meets or exceeds AAR standards and regulations, and has a standard AAR tongue and groove installation, which is necessary for pressure car applications.
Like all Kelso railroad tank car products, the company’s K2AV is fully manufactured in the United States and completely processed from raw materials, which is a significant improvement over the imported castings used by competitors. The company’s comprehensive supply chain management system enables Kelso to provide customers with the shortest and most reliable delivery time in the industry, which is the main benefit of the dynamic production system to customers.
The company’s K2AV developers have agreed to meet all the requirements of the AAR field service trial test. Their participation will help complete the regulatory process required to obtain full AAR approval. K2AV approved by AAR is expected to increase the market adoption potential of many customers.
The company’s CEO and President James R. Bond said: “We will continue to leverage Kelso’s investment in the development of rail tank car equipment for motivated customers to strengthen the company’s rail business. This more effective R&D method and improvement with AAR The partnership, including the company’s long-term M1003 manufacturing qualification, increases the long-term potential for more revenue from newly developed products. Given the strict railway regulations and testing guidelines, the company’s R&D projects (such as K2AV, KTBV, KPCH and KBOV), Including the final AAR approval, it will still be complicated, time-consuming and expensive. The new revenue stream generated from any new products of the company is still unpredictable and there is no guarantee that it will generate considerable commercial revenue. During the K2AV field service trial period The management is expected to allow the company to legally sell the number of K2AV devices specified by AAR to meet customer needs in a commercial manner. If it is fully adopted by the railway industry, then the company’s K2AV and the company’s new KTBV, KPCH and KBOV are expected to improve Kelso’s financial performance of railway-related products contributes.”
Kelso is a diversified product development company specializing in the design, production and distribution of proprietary service equipment in transportation applications. As a designer and reliable supplier of unique high-quality rail tank car valve equipment, the company has earned a reputation for safely handling and controlling hazardous and non-hazardous goods during transportation. All Kelso products are specifically designed to provide customers with economic and operational advantages while reducing the potential impact of human error and environmental hazards.
For more complete business and financial status of the company, please check the company’s website www.kelsotech.com, as well as the public documents published under the company profile. The URLs are on Canada’s www.sedar.com and EDGAR’s www.sec.gov respectively. . United States.
Legal statement regarding forward-looking statements: This press release contains “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements express expectations or intentions. The forward-looking statements in this press release include: our K2AV can greatly reduce the costly long-term performance problems that exist in today’s widely used angle valves; our K2AV developers will meet all the requirements of K2AV’s AAR field test and test; AAR The approved K2AV is expected to increase the market adoption potential for many customers; during the on-site service trial period, the company will be allowed to legally sell a small number of K2AV devices to support customers; and Kelso may sell K2AV, KTBV, KPCH and KBOV in the future. Improve its financial performance. Although Kelso believes that the expected future results, performance or achievements expressed or implied by forward-looking statements and information are based on reasonable assumptions and expectations, they cannot guarantee that such expectations will prove to be correct. Readers should not rely excessively on forward-looking statements and information, because such statements and information involve known and unknown risks, uncertainties and other factors that may lead to Kelso’s actual results, performance or achievements and expected future results, Major differences in performance or achievements expressed or implied by such forward-looking statements and information, including but not limited to our K2AV, may not significantly reduce the costly long-term performance issues that persist in today’s widely used angle valves; we may Inability to complete the regulatory process to obtain all AAR approvals for our K2AV; the risk of railway safety regulations and other regulatory approvals that may be changed, delayed or cancelled; the company’s products may not provide the expected economic or operational advantages; due to competition or to our products With reduced interest, we may not be able to grow and maintain the expected source of income; orders may be cancelled, competitors may enter the market by offering new products that can occupy some of our market share; production costs may increase, thereby affecting our EBITDA ; We may have to assume debt to keep up with costs and/or technology or product development expenses; and our new equipment products may not be able to gain the expected market share. Except as required by law, the company does not intend to update the forward-looking information and forward-looking statements contained in this press release.
Post time: Feb-25-2021